Kuwait Bank to adopt Cross-Border Payments via Ripple

The Kuwait Finance House (KFH) has been turned into the Arab nation’s first bank to join RippleNet, a blockchain network for international remittance payments
30 May 2018   1500

The Kuwaiti bank declared its intension to join RippleNet, a SWIFT-replacement blockchain network that sees over 100 financial institutions including banks, payment providers, remittance operators and other financial establishments use the product for real-time clearing and settlement of international transactions.

KFH stated that with this move, KFH can supply instant and secure cross-border money transfers within few seconds, with end-to-end visibility over the journey of the payment. Details of the suggestion are presently scarce and it stays to be seen if the bank uses Ripple’s xCurrent, an enterprise blockchain software that allows settlements in fiat or xRapid, a product which uses Ripple’s token XRP for real-time liquidity for international proceedings.

As the bank claims it will demand the approval of the Central Bank of Kuwait (CBK) prior to the run of the Ripple service, KFH convinces that the clients will gain profits  from faster payments in increased efficiency, security and transparency of the transaction at markedly lower costs than traditional solutions.

The defacto central bank of Saudi Arabia, the Saudi Arabian Monetary Authority (SAMA), has also cooperated with Ripple to pilot Ripple’s xCurrent among a number of regional banks. The SAMA is also the first central bank in the world to join RippleNet.

BTC is Better For Global Remittances Than XRP - Bitspark

CEO George Harrap is sure that the first cryptocurrency is much more practical because it is accepted by much more companies to pay
28 May 2019   226

The head of Bitspark, George Harrap, expressed the opinion that Bitcoin is better suited for cross-border payments than the Ripple's XRP token, which was specifically designed for this purpose, Crypto Briefing reports.

In particular, Harrap is sure that the first cryptocurrency is much more practical because it is accepted by much more companies to pay. At the same time, various services use XRP rarely because of its insufficient liquidity when exchanging for fiat currencies. This situation makes the Ripple token expensive to pay.

Bitspark researchers have published a report that assesses the suitability of various cryptocurrencies for making international payments. Thus, experts assigned Bitcoin and Ethereum “medium degree of suitability”. At the same time Stellar, thanks to the built-in decentralized exchange and the convenience of issuing stablecoins, received a higher mark.

The xRapid and xCurrent solutions, where the XRP token is used, are assigned a low degree of suitability due to their low liquidity when interacting with fiat money. In particular, according to Harrap, xRapid is convenient for operations with one currency, however, interaction with several monetary units is fraught with considerable difficulties. For example, an attempt to convert US dollars to Kenyan shillings will require payment routing through various channels and, possibly, conversion into various currencies, which translates into significant commissions.

The number of Ripple gateways that exist hasn’t changed in four years and basically consists of bitcoin exchanges for people to speculate on the price of XRP for BTC. None of these companies are remittance companies, nor are they using XRP for its intended purpose.

George Harrap

Head, Bitspark

Also in the company's report says that despite the low rate of transactions, the level of mass adoption of bitcoin is high, and it is more often used in payments than XRP.

There are no liquid Nigerian naira (NGN) and Ethereum (ETH) market, EOS and Vietnamese dong or XRP and Philippine peso markets. The only market which has sufficient liquidity and people willing to provide a local currency in exchange for a cryptocurrency is usually bitcoin.

George Harrap

Head, Bitspark

CoinMetrics researchers recently revealed a discrepancy of $ 84 million in Ripple reporting and XRP blockchain data.